Why You Should Sell Netflix and Tesla Now

Don’t be fooled by the rallies off the recent lows. We are in a bear market, and rallies are more apt to die out and take the market back down than they are to lift it to new highs. A careful look at the quality of earnings from the quality companies show that earnings are not impressive on an organic basis. A lot of companies are buying back stock and making it seem like earnings per share is bigger than it actually is as a result. Now imagine the stocks that either don’t make any money, or Read more [...]

Japanese Yen Forecast: Gains With Asian Stocks Decline

The decision to be made by the European Central Bank is highly anticipated. Various stock exchange markets have been affected by the uncertainties. Asian stock market is one of them which weakened ahead of the decision by the ECB. Japanese yen has been on an upward trend for the past three weeks against its peers, sterling pound and the euro.Japanese yen ups and downs seem to be over with three of the largest banks of Japan terming yen depreciation to be over. The process of rebounding has been a Read more [...]

Papa Johns Earnings Report Serves Up Profits

In a shaky economy, one of the niche businesses that tends to do well is pizza. When consumers are worried about the economy, they often scale down their spending habits. That includes spending on eating out, and consumers frequently will order pizza at home instead of going out for dinner. Papa John’s International (NASDAQ: PZZA) proved as much when it released fourth-quarter earnings on Tuesday. The company beat analyst expectations on profit, and the stock closed 2.5% higher for the day. Papa Read more [...]

Panic Is Building BofA Admits; Asks How Bad Could This Get?

Just one month ago, Bank of America’s equity strategist Savita Subramanian told Barrons to stay the course and to expect a 2,200 year end target on the S&P based on a year end 125 EPS forecast and an implied 17.6x forward multiple. Incidentally her 2015 year end S&P500 forecast was an identical 2,200. It appears that much has changed with the market’s “fundamentals” in the month that followed, because in a note released earlier today, the same Savita, when commenting on the “Worst Read more [...]

Our Top 5 Financial Posts of 2015

One of the biggest financial market stories of the year was China’s effort to internationalize the renminbi, from new clearing arrangements to depreciating its currency in August. Two of our top financial stories of 2015 cover the topic. Other top posts include posts on retail trading, the growth of options on futures and outlook for India’s currency, the rupee.   Why Retail Traders Should Learn Futures In February, Mark Omens wrote about the new Futures Institute, an online portal aimed at Read more [...]

Guess What Happened The Last Time Junk Bonds Started Crashing Like This? Hint: Think 2008

The extreme carnage that we are witnessing in the junk bond market right now is one of the clearest signals yet that a major U.S. stock market crash is imminent.  For those that are not familiar with “junk bonds”, please don’t get put off by the name.  They aren’t really “junk”.  They simply have a higher risk and thus a higher return than other bonds of the same type.  And yesterday, I explained why I watch them so closely.  If stocks are going to crash, you would expect to see Read more [...]

Investment Opportunities